Mehmet Caner, professor of economics, recently co-authored a study that illustrates the ability of machine learning to improve the Sharpe ratio which strengthens portfolio performance. Caner assisted with the development of an artificial intelligence (AI) program used in the financial sector to better manage assets and support financial decision-making.
“We set out to train an AI program to account for a wide variety of factors with the ultimate goal of achieving a specific Sharpe Ratio—and we did it,” said Caner. ” It’s important to note that there is no ‘correct’ Sharpe Ratio—it will vary depending on how much risk an investor is comfortable with. But we’ve been able to train our AI to achieve whatever Sharpe Ratio target you’ve established for your portfolio, over the course of 6-12 months.”
Read more on Phys.org, Triangle Inno, and WRAL.
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